BitMine invests $150M in Ether and wants to control 5% of all Ethereum

Everyone sees a different message in market corrections. For those who are nervous, it's time to escape. For the behemoths, it's time to stock up. BitMine, led by Tom Lee, took advantage of the latest shock to add $150 million in ETH to its treasury. An accumulation strategy that gets people talking and aims for a symbolic objective: to hold 5% of all existing Ethereum.

Ethereum: the hunt for 5% is on

BitMine hits hard after $70 million purchase. In a single week, 96,798 ETH were added to the company's coffers. A massive purchase, made via Kraken and BitGo, according to Arkham data. In total, BitMine now holds over 3% of the total ether supply. The objective is clear: reach 5%.

But where many see it as a simple gamble, Tom Lee calls it infrastructure. “ We increased our weekly ETH purchases by 39% “, he specifies. For him, Ethereum is where Bitcoin was in 2017: surrounded by doubts… but ready to explode.

While other crypto treasuries are scaling back – 81% drop in purchases since August – BitMine is standing alone. And it's not just a publicity stunt. With the arrival of Chi Tsang at the head of the company and three new independent directors, governance is strengthened for long-term ambition.

The winning trio: Fusaka, Fed, FOMO

There BitMine decision is not just ideological. It is part of a well-crafted timing. First, there's the Fusaka update, which rolled out recently. This technical change, crucial for Ethereum, improves its ability to process more transactions with more security.

Then there is the tide that is turning towards the Federal Reserve. Several senior officials – Waller, Daly, Williams – are hinting at an imminent rate cut, scheduled for December 10. This kind of macro context always boosts risky assets, including Ethereum.

The crypto market has found its bearings… We are now more than seven weeks away from the liquidation shock of October 10.

Tom Lee

A statement that justifies BitMine's renewed appetite: its weekly purchases of ETH jumped 39%.

The icing on the cake: ETFs linked to Ethereum collected 140 million dollars in one day, according to DeFiLlama, while those of Bitcoin saw 15 million fly away. The game of musical chairs begins.

BMNR, this Ethereum stock proxy that intrigues Wall Street

On the stock market side, the impact was not long in coming. BMNR, the action of BitMine, soared by 15% in December. For what ? Because it acts as a lever for Ethereum. The correlation between BMNR and ETH rose to 0.50. When Ethereum goes up, BMNR follows, even amplifies.

Technical signals reinforce this idea. The CMF (Chaikin Money Flow), an indicator of the flow of large aircraft, is increasing despite stagnant prices. The OBV (On-Balance Volume) is also climbing. Everything suggests a discreet accumulation of large investors.

An inverse head-and-shoulder pattern is emerging, with upside potential towards $52.70, +55% from the current $33.59. But be careful: in case of failure, $24.31 remains the breakout level.

Key figures not to forget

• 3,203 dollars: the price of Ethereum at the editorial office;
• 5%: BitMine's target as share of total ETH supply;
• $140 million: Ethereum ETF inflows in one day;
• +15%: increase in BMNR shares in December;
• 81%: decline in ETH purchases by other treasuries since August.

Among some analysts, skepticism remains. For them, despite the energy deployed by BitMine, corporate interest in Ethereum seems to be eroding. In fact, ETH is in free fall in institutional portfolios, and there is no guarantee that a single actor, no matter how aggressive, will manage to change the situation.